Say if a driving accident caused injures to another person in the amount of $50,000 (with healthcare costs at their highest ever, this could easily get another zero added). If one only has Texas’s minimum bodily injury protection ($30,000 per person, $60,000 per accident), the remaining $20,000 must be paid personally by the driver that caused the accident. But, if more than the minimum was purchased — say $50,000 / $100,000 — not a single dime needs to be paid out of pocket.
Of course, higher coverage equals higher monthly premiums. However, if one considers that paying an extra $80 a month may avoid paying someone $20,000 out of pocket, the perspective begins to change. That would take an accident-free 20 years to spend the same amount as on that higher coverage. Statistically speaking, on average, a person gets in a wreck at least once every 18 years. We pray it’s just a fender bender, but if something worse were to happen, there is no better feeling than being fully covered.
It becomes very important to understand what the types of coverage available to you are, which ones fit your budget, and how much coverage is really needed, when starting to shop for auto insurance. This makes it essential to compare auto insurance rates that include more than the minimum required coverage. Keeping this in mind may help avoid becoming the victim of an accident only to find out after the fact that you’re underinsured.
Your independent insurance agent is the best person to help you learn everything you need to know to make an informed decision about your car insurance coverage amounts.